This post presents a full plan for offboarding USDT vault types (USDT-A, UNI-V2-ETHUSDT-A, and UNI-V2-DAIUSDT-A), and seeks confirmation from the community to move forward with the proposed next steps.
Both the Uniswap v2 vault types including USDT (ETHUSDT and DAIUSDT) have zero outstanding debt and debt ceilings set to 0, so no additional action is needed before these vault types can be deprecated.
There are 6 remaining Maker vaults using the USDT-A vault type, with the following collateralization and debt levels.
The USDT price feed is not used by any third parties, so once these vaults are closed Maker will be able to remove support for the USDT price feed and reduce operating costs.
Set the USDT-A liquidation penalty to 0%
Removing the liquidation penalty ensures that we don’t penalize users for deprecation of the USDT-A vault type.
Increase USDT-A liquidation ratio to 300%
Increasing USDT-A liquidation ratio to 300% is high enough to trigger liquidation of all remaining vaults.
After all remaining USDT-A vaults are closed, Maker can remove the USDT price feed and related vault types (USDT-A, UNI-V2-ETHUSDT-A, and UNI-V2-DAIUSDT-A).
Do you support the parameter changes outlined above to offboard USDT and related vault types?
This signal request poll will run for the next 2 weeks, until Tuesday September 21. If a majority of forum voters (excluding abstain votes) are in favor, the proposed changes will be submitted for an on-chain governance poll the following week.